Julie Hepworth, group regulatory manager at Perspective Financial Group, told FTAdviser that the regulator will have a "degree of leniency" in the first couple of months of the Retail Distribution Review, which is implemented from 1 January 2013.
highlighted that advisers will not have a choice about the move to adviser charging from fees, as this will be dictated by providers and it will simply be a case of "switching" over the Christmas period.
However, Ms Hepworth
said that given the FSA will be going through its own changes to the Financial Conduct Authority, they will be "very pre-occupied" with that and so is unlikely to issue fines immediately for non-compliance with the new independence criteria, for example.
said: "With the independent and restricted advice models, I think there will be a period of time where the FSA, or what will be the FCA, will issue further guidance and will want to be seen to be helping firms through this transitional period.
"It would be very harsh for them to start issuing fines at this point."
also highlighted that she
believes the regulator has reviews planned for 2014, when they will look at the effectiveness of the RDR and "that is when we will start to see some enforcement cases with firms that just haven't taken it seriously".